Fourth Quarter 2023 Financial Highlights
- Revenue of $932.4 million, up 9 percent on a year-over-year basis, up 3 percent on an organic basis
- Annualized recurring revenue ("ARR") was $1.98 billion, up 24 percent year-over-year, up 13 percent on an organic basis
- GAAP operating income was $96.9 million, 10.4% of revenue and non-GAAP operating income was $226.6 million, 24.3% of revenue
- GAAP net income was $63.0 million and non-GAAP net income was $156.6 million
- Diluted earnings per share ("EPS") was $0.25 on a GAAP basis and $0.63 on a non-GAAP basis
- Adjusted EBITDA was $241.2 million, 25.9 percent of revenue
Executive Quote
"We finished 2023 with a record level of ARR, Gross Margin, and Adjusted EBITDA," said Rob Painter, Trimble's president and chief executive officer. "We enter 2024 with resolve to continue executing our strategy and returning capital to shareholders, while navigating macroeconomic uncertainties."
Fiscal 2023 Financial Highlights
- Revenue of $3,798.7 million, up 3 percent on a year-over-year basis, up 1 percent on an organic basis
- GAAP operating income was $448.8 million, 11.8% of revenue, and non-GAAP operating income was $934.7 million, 24.6% of revenue
- GAAP net income was $311.3 million and non-GAAP net income was $663.7 million
- Diluted EPS was $1.25 on a GAAP basis, and $2.66 on a non-GAAP basis
- Adjusted EBITDA was $1,009.7 million, 26.6 percent of revenue
- During fiscal 2023, Trimble repurchased approximately 2.4 million shares for $100.0 million.
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue between $3,570 million and $3,670 million and non-GAAP EPS of $2.60 to $2.80. The full year 2024 non-GAAP EPS assumes a tax rate of 17.5 percent and approximately 243 million shares outstanding.
For the first quarter of 2024, Trimble expects to report revenue between $905 million and $935 million and non-GAAP EPS of $0.57 to $0.62. The first quarter of 2024 non-GAAP EPS assumes a tax rate of 17.5 percent and approximately 248 million shares outstanding.
Full-year 2024 and first quarter of 2024 guidance both assume that the joint venture with AGCO closes at the beginning of the second quarter of 2024.
Trimble is unable to provide a quantitative reconciliation of these measures to GAAP with a reasonable degree of accuracy because Trimble has not estimated the fair value of the assets and liabilities, including intangible assets and related amortization expense, as well as related tax expense, associated with the agriculture business that will be contributed to the joint venture with AGCO. An explanation of how we calculate non-GAAP EPS and other information relating to this non-GAAP measure is included in the supplemental schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 12, 2024 at 8:00 a.m. ET to review its fourth quarter and full year 2023 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at http://investor.trimble.com. Investors without internet access may dial into the call at (888) 660-6347 (U.S.) or (929) 201-6594 (international). The conference ID is 1043223. The replay will also be available on the web at the address above.
About Trimble
Dedicated to the world's tomorrow, Trimble is a technology company delivering solutions that enable our customers to work in new ways to measure, build, grow and move goods for a better quality of life. Core technologies in positioning, modeling, connectivity and data analytics connect the digital and physical worlds to improve productivity, quality, safety, transparency and sustainability. From purpose-built products and enterprise lifecycle solutions to industry cloud services, Trimble is transforming critical industries such as construction, geospatial, agriculture and transportation to power an interconnected world of work. For more information about Trimble (NASDAQ: TRMB), visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational results. These forward-looking statements are subject to change, and actual results may materially differ due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions, or get the benefits it is expecting from its joint ventures, including with AGCO. The Company's results would also be negatively impacted due to weakness and deterioration in the US and global macroeconomic outlook, including slowing growth, inflationary pressures and increases in interest rates, which may affect demand for our products and services and increase our costs, adversely affecting our revenues and profitability, supply chain shortages and disruptions, the pace at which our dealers work through their inventory, changes in our distribution channels, adverse geopolitical developments and the potential impact of volatility and conflict in the political and economic environment, including the Middle East and the Russian conflict with Ukraine and its direct and indirect impact on our business, foreign exchange fluctuations, the pace we transition our business model towards a subscription model, the imposition of barriers to international trade, and the impact of acquisitions or divestitures. Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
